Capacity reduction, quota trading and productivity: the case of a fishery

We present the first ex post study that quantitatively analyses the effects of a licence buyback and enhanced quota trading on the profitability and productivity of individual vessels in a fishery. Using firm-level data and a profit index decomposition method, we find that small and large vessels and three different trawler fleets all experienced substantial productivity gains in the year immediately following a licence buy-back and the establishment of a quota brokerage service. The apparent ongoing benefits of the buy-back and increased quota trading over the sample period are in stark contrast to the generally unfavourable long-term outcomes commonly associated with vessel buy-backs in input-controlled fisheries.


Issue Date:
2006-06
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/116929
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 50, Issue 2
Page range:
189-206
Total Pages:
18




 Record created 2017-04-01, last modified 2017-08-26

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